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2019-08-28
President Tsai's video address to the 101st American Legion National Convention

President Tsai Ing-wen delivered a major speech via video before the 101st American Legion National Convention on the afternoon of August 27 Indiana time (early morning of August 28 Taipei time).

The annual convention was held at the American Legion national headquarters in Indianapolis, Indiana, and invited international friends from Taiwan, the United Kingdom, Canada, Korea and other countries to deliver remarks. Distinguished guests included US Secretary of State Mike Pompeo, American Legion National Commander Brett Reistad, and Taiwan's Veterans Affairs Commission Deputy Minister Lee Wen-chung (李文忠).

The following is a transcript of the president's speech:

It is an honor to address America's largest and one of its most prestigious veteran's organizations. I want to thank National Commander Brett Reistad for his invitation and staunch support for Taiwan – support that is rooted in our shared ideals of freedom and democracy.

While I cannot be here in person, I want to congratulate the American Legion on this important anniversary, as you commemorate a century of service to freedom around the world.

Over the past hundred years, American soldiers have fought and sacrificed to preserve the universal values we hold dear: the belief that we are born free, society should be just, and power should be placed in the hands of the people.

From the battlefields of Europe to the islands of the Pacific, millions of American soldiers have bravely honored those principles. With every sacrifice made, the world inched towards a more just future.

And because of these efforts, countries were able to throw off the yoke of oppression, and were given the freedom to join the community of free societies.

Last December, Brett led a delegation from the American Legion to Taiwan. We discussed our shared interest in protecting liberty in the Asia Pacific, in the hope that we never again have to settle our differences through war. We also exchanged views on how we can take better care of our veterans, to honor their selfless service to our countries.

As I said to Brett then, and I'll say again now: the best way to ensure peace and stability in the Asia Pacific region is to preserve the strong relationship Taiwan and the United States enjoy today, and to remain resolute in our defense of freedom and democracy.

As we all know too well, the struggle for domination and control has played out throughout human history, even though it has taken on new forms.

Today, just across the Taiwan Strait, we struggle with a giant that has chosen to use new tools of technological advancement not for the greater good, but to sow disinformation, division, and discord in free and open societies.

As I have said again and again, Taiwan will never succumb to this pressure. Not on my watch. But we cannot face this challenge alone. We need reinforcement from the global community of like-minded countries.

Fortunately, thanks to support from organizations such as the American Legion, the relationship between Taiwan and the United States is stronger than ever. And we have seen a number of significant developments over the past year.

We commemorated the 40th anniversary of the Taiwan Relations Act, a piece of legislation that has assured the people of Taiwan that the United States will always stand by our side. As Ronald Reagan once said: “We keep our promises to Taiwan. Period.”

We celebrated the formal opening of the new AIT compound, the U.S. representative building in Taipei, which signifies the multitude of interests our countries share.

We acknowledged enduring bipartisan support from Congress, exemplified through Taiwan's inclusion in legislation such as the Asia Reassurance Initiative Act and the John S. McCain National Defense Authorization Act. This follows the passage of the Taiwan Travel Act in 2018.

We marked the continued sale of important defensive arms to Taiwan, showcasing our commitment towards our own defense, and the security of the Asia Pacific region as a whole.

And on this note, I'm pleased to share with you that last week, the U.S. government formally agreed to sell 66 new F-16Vs to Taiwan, following recent sales of new M1A2 tanks and missile capabilities.

These latest sales mean that our men and women in uniform will soon be driving M1A2s to protect our beaches, and piloting F-16Vs across our skies.

I want to be clear: we don't purchase military hardware because we pursue conflict. We do so because we know, as you do, that power only responds to strength.

As we face Chinese fighter planes that barrel across the center line of the Taiwan Strait and cut through our air space, we cannot afford to be naïve about their intentions. We cannot deter aggression if we are not prepared to protect ourselves. We must show that we are firmly resolved to defend our freedom, democracy, and way of life.

The determination to stand up for our values and beliefs – no matter the odds – is what truly defines our two countries.

As Vice President Mike Pence stated, in words that resonated across the region: “America will always believe that Taiwan's embrace of democracy shows a better path for all the Chinese people.”

The relationship between Taiwan and the United States is also strengthened by robust civil exchanges, such as our longstanding friendship with the American Legion.

Many would be surprised to learn that our bond with the Legion dates back almost half a century, when we first sought advice from the Legion on how to improve veteran care. More recently, the Legion has graciously welcomed our presence at its national conventions, and national commanders have continued to visit Taiwan.

One issue that came up in our conversation last year in Taiwan was how this relationship leads to substantive results, and how we trade best practices when it comes to providing access to quality healthcare, better jobs, and more dignified long-term care. We discussed ways Taiwan can learn from the Legion's job training and support workshops, while sharing our expertise in providing high quality healthcare at an affordable cost.

Following our dialogue, we are looking into the possibility of sending a veterans' affairs representative to the U.S., so that we can follow up on these initiatives.

Furthermore, we will be looking for ways to facilitate exchanges in veterans' healthcare, encouraging more personnel from our veterans' hospitals to visit the U.S.

I know that in small towns and rural communities across America, even if there is no grocery store to be found, you can often find one building emblazoned with the words: American Legion. As a student in the small town of Ithaca in upstate New York, I used to pass by these buildings regularly, wondering what went on inside those unassuming offices.

Today, I recognize that the full scope of the Legion's work encompasses not only supporting veterans and communities across America, but also serving as a force for peace and stability around the world.

The service members the Legion represents – all of you seated here today – recognize the sacrifices that have been made in defense of freedom and democracy around the world. All of you know, as do we, that we must continue to be vigilant, that we can never take our liberty for granted.

The best way to honor these past sacrifices is to do everything we can to avoid future conflict, without ever compromising our core beliefs.

As the President of the Republic of China (Taiwan), I share in this pursuit with all of you. We will not pursue conflict with China, but we ask that they respect our democracy. We will not intentionally provoke China, but neither will we be naïve to China's true intentions.

We will continue to work hand-in-hand with the United States, and other like-minded countries around the world, in the interests of preserving the peace that has served our region so well for decades.

Today, I want to thank the American Legion and all of its members for your lifelong devotion to our shared principles and values.

Your service towards the preservation of liberty resonates around the world.

I also want to offer my congratulations on your 100th anniversary. I wish you a very successful national convention, and look forward to working even more closely with you all in the future.

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President Lai meets Japanese Diet Member and former Minister of State for Economic Security Takaichi Sanae
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A translation of President Lai’s remarks follows: Ms. Michèle Flournoy, chair of the CNAS Board of Directors, is a good friend of Taiwan, and she has made major contributions to Taiwan-US relations through her long-time efforts on various aspects of our cooperation. I am happy to welcome Chair Flournoy, who is once again leading a NextGen Fellowship delegation to Taiwan. CNAS is a prominent think tank focusing on US national security and defense policy based in Washington, DC. Its NextGen Fellowship has fostered talented individuals in the fields of national security and foreign affairs. This year’s delegation is significantly larger than those of the past, demonstrating the increased importance that the next generation of US leaders attach to Taiwan. On behalf of the people of Taiwan, I extend my sincerest welcome to you all. The Taiwan Strait, an issue of importance for our guests, has become a global issue. There is a high degree of international consensus that peace and stability across the Taiwan Strait are indispensable elements in global security and prosperity. Facing military threats from China, Taiwan proposed the Four Pillars of Peace action plan. First, we are actively implementing military reforms, enhancing whole-of-society defense resilience, and working to increase our defense budget to more than 3 percent of GDP. Second, we are strengthening our economic resilience. As Taiwan’s economy must keep advancing, we can no longer put all our eggs in one basket. We are taking action to remain firmly rooted in Taiwan while expanding our global presence and marketing worldwide. In these efforts, we are already seeing results. Third, we are standing side-by-side with other democratic countries to demonstrate the strength of deterrence and achieve our goal of peace through strength. And fourth, Taiwan is willing, under the principles of parity and dignity, to conduct exchanges and cooperate with China towards achieving peace and stability in the Taiwan Strait. This April 10 marked the 46th anniversary of the enactment of the Taiwan Relations Act. We thank the US government for continuing its arms sales to Taiwan over the years, supporting Taiwan’s efforts to enhance its national defense capabilities and jointly maintaining peace and stability in the Indo-Pacific region. We look forward to Taiwan and the US continuing to strengthen collaboration on the development of both our defense industries as well as the building of non-red supply chains. This will yield even more results and further deepen our economic and trade partnership. The US is now the main destination for outbound investment from Taiwan. Moving forward, we will promote our “Taiwan plus one” policy, that is, new arrangements for Taiwan plus the US. And our government will form a “Taiwan investment in the US team” to expand investment. We hope this will bring Taiwan-US economic and trade cooperation even closer and, through mutually beneficial assistance, allow us to generate development that benefits both our sides while reducing our trade deficit. In closing, thank you once again for visiting Taiwan. We hope your trip is fruitful and leaves you with a deep impression of Taiwan. We also hope that going forward you continue supporting Taiwan and advancing even greater development for Taiwan-US ties.  Chair Flournoy then delivered remarks, first thanking President Lai for making time to receive their delegation. Referring to President Lai’s earlier remarks, she said that it is quite an impressive group, as past members of this program have gone on to become members of the US Congress, leading government experts, and leaders in the think-tank world and in the private sector. 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President Lai delivers remarks on US tariff policy response
On April 6, President Lai Ching-te delivered recorded remarks regarding the impact of the 32 percent tariff that the United States government recently imposed on imports from Taiwan in the name of reciprocity. In his remarks, President Lai explained that the government will adopt five response strategies, including making every effort to improve reciprocal tariff rates through negotiations, adopting a support plan for affected domestic industries, adopting medium- and long-term economic development plans, forming new “Taiwan plus the US” arrangements, and launching industry listening tours. The president emphasized that as we face this latest challenge, the government and civil society will work hand in hand, and expressed hope that all parties, both ruling and opposition, will support the measures that the Executive Yuan will take to open up a broader path for Taiwan’s economy. A translation of President Lai’s remarks follows: My fellow citizens, good evening. The US government recently announced higher tariffs on countries around the world in the name of reciprocity, including imposing a 32 percent tariff on imports from Taiwan. This is bound to have a major impact on our nation. Various countries have already responded, and some have even adopted retaliatory measures. Tremendous changes in the global economy are expected. Taiwan is an export-led economy, and in facing future challenges there will inevitably be difficulties, so we must proceed carefully to turn danger into safety. During this time, I want to express gratitude to all sectors of society for providing valuable opinions, which the government regards highly, and will use as a reference to make policy decisions.  However, if we calmly and carefully analyze Taiwan’s trade with the US, we find that last year Taiwan’s exports to the US were valued at US$111.4 billion, accounting for 23.4 percent of total export value, with the other 75-plus percent of products sold worldwide to countries other than the US. Of products sold to the US, competitive ICT products and electronic components accounted for 65.4 percent. This shows that Taiwan’s economy does still have considerable resilience. As long as our response strategies are appropriate, and the public and private sectors join forces, we can reduce impacts. Please do not panic. To address the reciprocal tariffs by the US, Taiwan has no plans to adopt retaliatory tariffs. There will be no change in corporate investment commitments to the US, as long as they are consistent with national interests. But we must ensure the US clearly understands Taiwan’s contributions to US economic development. More importantly, we must actively seek to understand changes in the global economic situation, strengthen Taiwan-US industry cooperation, elevate the status of Taiwan industries in global supply chains, and with safeguarding the continued development of Taiwan’s economy as our goal, adopt the following five strategies to respond. Strategy one: Make every effort to improve reciprocal tariff rates through negotiations using the following five methods:  1. Taiwan has already formed a negotiation team led by Vice Premier Cheng Li-chiun (鄭麗君). The team includes members from the National Security Council, the Office of Trade Negotiations, and relevant Executive Yuan ministries and agencies, as well as academia and industry. Like the US-Mexico-Canada free trade agreement, negotiations on tariffs can start from Taiwan-US bilateral zero-tariff treatment. 2. To expand purchases from the US and thereby reduce the trade deficit, the Executive Yuan has already completed an inventory regarding large-scale procurement plans for agricultural, industrial, petroleum, and natural gas products, and the Ministry of National Defense has also proposed a military procurement list. All procurement plans will be actively pursued. 3. Expand investments in the US. Taiwan’s cumulative investment in the US already exceeds US$100 billion, creating approximately 400,000 jobs. In the future, in addition to increased investment in the US by Taiwan Semiconductor Manufacturing Company, other industries such as electronics, ICT, petrochemicals, and natural gas can all increase their US investments, deepening Taiwan-US industry cooperation. Taiwan’s government has helped form a “Taiwan investment in the US” team, and hopes that the US will reciprocate by forming a “US investment in Taiwan” team to bring about closer Taiwan-US trade cooperation, jointly creating a future economic golden age.  4. We must eliminate non-tariff barriers to trade. Non-tariff barriers are an indicator by which the US assesses whether a trading partner is trading fairly with the US. Therefore, we will proactively resolve longstanding non-tariff barriers so that negotiations can proceed more smoothly. 5. We must resolve two issues that have been matters of longstanding concern to the US. One regards high-tech export controls, and the other regards illegal transshipment of dumped goods, otherwise referred to as “origin washing.” Strategy two: We must adopt a plan for supporting our industries. For industries that will be affected by the tariffs, and especially traditional industries as well as micro-, small-, and medium-sized enterprises, we will provide timely and needed support and assistance. Premier Cho Jung-tai (卓榮泰) and his administrative team recently announced a package of 20 specific measures designed to address nine areas. Moving forward, the support we provide to different industries will depend on how they are affected by the tariffs, will take into account the particular features of each industry, and will help each industry innovate, upgrade, and transform. Strategy three: We must adopt medium- and long-term economic development plans. At this point in time, our government must simultaneously adopt new strategies for economic and industrial development. This is also the fundamental path to solutions for future economic challenges. The government will proactively cooperate with friends and allies, develop a diverse range of markets, and achieve closer integration of entities in the upper, middle, and lower reaches of industrial supply chains. This course of action will make Taiwan’s industrial ecosystem more complete, and will help Taiwanese industries upgrade and transform. We must also make good use of the competitive advantages we possess in such areas as semiconductor manufacturing, integrated chip design, ICT, and smart manufacturing to build Taiwan into an AI island, and promote relevant applications for food, clothing, housing, and transportation, as well as military, security and surveillance, next-generation communications, and the medical and health and wellness industries as we advance toward a smarter, more sustainable, and more prosperous new Taiwan. Strategy four: “Taiwan plus one,” i.e., new “Taiwan plus the US” arrangements: While staying firmly rooted in Taiwan, our enterprises are expanding their global presence and marketing worldwide. This has been our national economic development strategy, and the most important aspect is maintaining a solid base here in Taiwan. We absolutely must maintain a solid footing, and cannot allow the present strife to cause us to waver. Therefore, our government will incentivize investments, carry out deregulation, and continue to improve Taiwan’s investment climate by actively resolving problems involving access to water, electricity, land, human resources, and professional talent. This will enable corporations to stay in Taiwan and continue investing here. In addition, we must also help the overseas manufacturing facilities of offshore Taiwanese businesses to make necessary adjustments to support our “Taiwan plus one” policy, in that our national economic development strategy will be adjusted as follows: to stay firmly rooted in Taiwan while expanding our global presence, strengthening US ties, and marketing worldwide. We intend to make use of the new state of supply chains to strengthen cooperation between Taiwanese and US industries, and gain further access to US markets. Strategy five: Launch industry listening tours: All industrial firms, regardless of sector or size, will be affected to some degree once the US reciprocal tariffs go into effect. The administrative teams led by myself and Premier Cho will hear out industry concerns so that we can quickly resolve problems and make sure policies meet actual needs. My fellow citizens, over the past half-century and more, Taiwan has been through two energy crises, the Asian financial crisis, the global financial crisis, and pandemics. We have been able to not only withstand one test after another, but even turn crises into opportunities. The Taiwanese economy has emerged from these crises stronger and more resilient than ever. As we face this latest challenge, the government and civil society will work hand in hand, and I hope that all parties in the legislature, both ruling and opposition, will support the measures that the Executive Yuan will take to open up a broader path for Taiwan’s economy. Let us join together and give it our all. Thank you.
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